The Power of Exponential Thinking

Why linear models fail in nonlinear markets—and what to do instead.

We’re Additive. Markets Aren’t.

Humans think in straight lines. Add 5% more risk, get 5% more return. Delay a decision, lose a day. But financial systems don’t work like that. They evolve, accelerate, and compound. Slowly at first, then all at once.

Markets follow power laws, fat tails, compounding effects, and feedback loops. The math is nonlinear. The consequences are often misunderstood.

If you want to model, trade, or even just survive in modern financial markets, you need to think exponentially.